Bitcoin Price Ready for Next Move Up After Rebound Above $8,000

Published at: Jan. 10, 2020

On Friday Bitcoin (BTC) price reclaimed $8,000 as bulls appear to be setting their sights on a second go at the weekly high at $8,473. Earlier in the week, crypto-media speculated that the price run-up to $8,473 was fuelled by fear of a war breaking out between the United States and Iran.

Then, as the price pulled back after U.S. President Donald Trump declined to further escalate the situation, analysts again attributed the entire boom above $8.4K and the swift retracement to $7,660 to the Iran-U.S. conflict.

Today’s move back above $8,000 suggests that technical factors, not just geopolitical events, are driving Bitcoin’s recent price action.

Cryptocurrency market weekly overview. Source: Coin360

After topping out at $8,473, on Jan. 8, analysts forecast that if Bitcoin failed to hold the 200-day moving average, the price would pull back to the 61.8% Fibonacci retracement level near $7,500.

At the time, the rally was showing signs of exhaustion as the relative strength index (RSI) was overbought and the moving average convergence divergence (MACD) histogram also was beginning to show a reduction in momentum.

In trading circles, investors also discussed the need for Bitcoin to fill the CME gap at $7,680, a phenomenon that has become a common occurrence to the extent that many traders factor the necessity of it to their analysis and trading regime.

CME Bitcoin Futures 4-hour chart. Source: TradingView

While Bitcoin was unable to hold the 200-DMA, through the current pullback it has held above the 50-DMA and today the price bounced right off the 50% Fibonacci retracement at $7,663, partially filling the CME gap mentioned earlier.

BTC USD daily chart. Source: TradingView

Traders will note that the RSI sharply reversed course on the daily time frame and remains in bullish territory at 63. Also, the colored bars of the MACD histogram have flipped from red to pink and the shortening of each bar shows an increase in momentum and the possibility of a bull cross between the MACD and the signal line.

Currently, the bulls are attempting to push the price above the 200-DMA $8,139 which was briefly reached earlier today. If buyers manage to push the price above the 200-DMA then the main trendline of the long-term descending channel is likely to again present resistance. Almost like clockwork, the trendline has served as resistance at least 4 times since Bitcoin reached its 2019 high at $13,800.

It appears that $8,000 will now function as a level of support, and over the short term if bulls can push the price through the 200-DMA and descending channel trendline to $8,300, traders will target $8,600, followed by $9,200 and $9,500.

BTC USD daily chart. Source: TradingView

Earlier today Cointelegraph contributor Michael van De Poppe cautioned that while the current price action favors bulls with a target of $9,500 to $10,000, there is always the possibility of a fake-out, which would culminate with a strong rejection of the 200-DMA and descending channel trendline, leading Bitcoin price back to the lower support of the descending channel around $6,400 to $5,800.

Given Bitcoin’s previous price action around the descending trendline, it seems like a reasonable suggestion to advise caution and traders should not feel overly bullish at this point.

BTC USD daily chart. Source: TradingView

Today’s move back above $8,000 also brought the price to the top of the upper Bollinger Band arm which is lined up with the 200-DMA. If bulls are unable to supply enough volume to push through this zone and up to $8,300, there is an increased chance that the price could drop back to the 50-DMA at $7,600 where the 61.8% Fibonacci retracement is located.

If the 50-DMA fails as support, then a drop to the Bollinger Band MA at $7,460 could occur and below this $7,300 has been established as strong support.

Bitcoin weekly price chart. Source: Coin360

The overall cryptocurrency market cap now stands at $214.9 billion and Bitcoin’s dominance rate is at 68.3%. Notable gainers amongst altcoins were Litecoin (LTC) with a 9.43% gain, Bitcoin Cash with (BCH) 9.77% and Bitcoin SV (BSV) with an impressive 26.85%.

Keep track of top crypto markets in real time here
Tags
Bitcoin
Bitcoin Price
Markets
Market Update
Related Posts
Bitcoin bulls make a run on $45K after Twitter debuts crypto tipping
Bullish optimism is on the rise across the cryptocurrency market on Sept. 23 as prices continue to recover from this week's volatility which was the result of regulatory pressure on the crypto sector, the Federal Open Market Committee meeting on the Fed's interest rate hikes and monetary policy, along with fears that the Evergrande situation would ripple out to impact global financial markets. Data from Cointelegraph Markets Pro and TradingView shows that after trading in a range between $43,000 and $44,300 during the early trading hours on Sept. 23, the price of Bitcoin (BTC) spiked above $44,800 in the early …
Bitcoin / Sept. 23, 2021
Institutional demand for Bitcoin evaporates as BTC struggles below $31K
The rocky road that Bitcoin (BTC) has been on for the past two months continues as a widely predicted move downward materialized in the early hours on Monday and dropped the price of BTC below $31,000. Data from Cointelegraph Markets Pro and TradingView shows that a wave of mid-day selling pushed the price of BTC to a low of $30,400 before bulls arrived to provide support and lift the price back to $30,850. The market as a whole continues to face an uphill battle as the miner exodus following China’s crackdown on the mining industry has led to the fourth …
Bitcoin / July 20, 2021
Altcoins notch triple-digit gains as Bitcoin price pushes toward $60K
If this past weekend is any indication of the current bull market cycle, then an altcoin season may be well underway. Similar to previous cycles, after Bitcoin (BTC) makes a significant run-up in price and then enters a consolidation period, funds begin to migrate into large and small market cap altcoins. Data from Cointelegraph Markets and TradingView shows that while Bitcoin traded in a range between $57,000 and $60,200 over the past week, multiple altcoins saw double-digit gains as exchange listings and protocol developments brought a new wave of enthusiasm and trading volume for select projects. Tron ecosystem leads the …
Blockchain / April 6, 2021
Bitcoin sell-off over? Strong 'buy the dip' signal flashes for the first time in 5 months
The price of Bitcoin (BTC) has dropped to the key $44,000-$45,000 support level on Feb. 28 for the third time in the past week. The BTC/USD pair briefly dipped below $44,000 on Bitstamp before paring some of the losses, bouncing back above $45,000 at the time of writing. 'Full rest' for SOPR, funding rates Some analysts have pointed out an uptick in miners' selling as the reason behind the latest drop in price. It's a whale war, and you know who got the real power. US Institutional Investors - Coinbase Outflow = STRONG BUY - Coinbase Premium = BUY BTC …
Bitcoin / Feb. 28, 2021
Bitcoin Price Falls Below $6,000 on Declining Trading Volume
For the second time in one week Bitcoin (BTC) price has fallen below $6,000. Today’s pullback below the $6,000 mark comes as the weekly and monthly close approach and its possible that the price could also be influenced by investors fear that traditional markets may continue to correct at Monday’s opening bell. Crypto market daily price chart. Source: Coin360 At the time of writing the price is trading at $5,917 after bulls failed to hold the $6,200 support. For the short term, Bitcoin will need to hold $5,850 or traders will set their sights on $5,700, a point where the …
Bitcoin / March 29, 2020